Minerals Technologies gets $850 million refinancing revolver, term loan

By Marisa Wong

Los Angeles, Aug. 11 – Minerals Technologies Inc. entered into a refinancing facility agreement on Aug. 11 to amend its credit agreement dated May 9, 2014 with JPMorgan Chase Bank, NA as administrative agent and collateral agent, according to an 8-K filing with the Securities and Exchange Commission.

The prior credit agreement provided for, among other things, a $788 million senior secured floating-rate term loan facility and a $300 million senior secured revolving credit facility.

The amendment provides for, among other things, a new senior secured revolver with aggregate commitments of $300 million, a portion of which may be used for the issuance of letters of credit and swingline loans, and a new senior secured term loan with aggregate commitments of $550 million.

The maturity date for the refinancing revolver and refinancing term loan is Aug. 11, 2027.

Loans will bear interest at term SOFR plus a credit spread adjustment equal to 10 basis points plus an initial applicable margin equal to 150 bps. The applicable margin generally ranges from 125 bps to 175 bps, depending on the net leverage ratio.

The company will pay a commitment fee of 25 bps on the undrawn portion of the revolver. The commitment fee generally ranges from 15 bps to 30 bps, also based on the leverage ratio. The company must also pay a fronting fee of 12.5 bps on the average daily undrawn amount of, plus unreimbursed amounts in respect of disbursements under, letters of credit issued under the revolver.

The company may incur incremental term loans and establish incremental revolving commitments in an aggregate amount of up to the greater of (i) $300 million and (ii) 100% of consolidated EBITDA for the four preceding fiscal quarters, plus additional amounts that would not, on a pro forma basis, cause the company’s ratio of total secured indebtedness to consolidated EBITDA for the four preceding fiscal quarters to exceed 3.25 to 1.00.

In lieu of establishing such incremental facilities, the company may also incur incremental secured and unsecured bonds or term loans under separate documentation.

The amended credit agreement contains financial covenants that require the company to maintain a maximum net leverage ratio of 4.00 to 1.00 and a minimum interest coverage ratio of 3.00 to 1.00.

Minerals Technologies is a New York-based resource- and technology-based growth company that develops, produces and markets a broad range of specialty mineral, mineral-based and synthetic mineral products and related systems and services.

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